Marcos requests Congress to raise defense spending by 7 percent

President Ferdinand Marcos Jr. raised defense spending to 328.8 billion pesos next year from 305.5 billion pesos in the current budget.

President Ferdinand Marcos Jr. receives the copies of the P7.2-trillion 2027 national expenditure program from Budget Secretary Kim Robert de Leon on Monday, August 10, 2026. Official handout.

Manuel Mogato | August 12, 2026

MANILA — President Ferdinand Marcos Jr. has requested Congress to increase the country’s defense spending by 7.6 percent amid heightened regional tensions.

This week, Marcos submitted to the House of Representatives a 7.2 trillion pesos, or $118.1 billion, spending plan for 2027, about 6 percent higher than the current appropriations approved this year.

Marcos Jr. raised defense spending to 328.8 billion pesos next year from 305.5 billion pesos in the current budget. (Also read: Teodoro urges government to increase defense spending to build credible deterrence)

The 2027 defense spending does not include the 40-50 billion pesos request for the military modernization trust fund. It will finance annual amortization for at least a squadron of FA-50 light fighters, four guided-missile frigates, and other big-ticket items. (Also read: U.S. senior defense official sees PH as ‘model ally’ in shift toward stronger regional deterrence)

Less than 10 percent of the 40 billion pesos allocated for this modernization program went to new defense contracts. The bulk went to paying outstanding loans.

More than 50 percent of the requested defense spending will go to personnel services, including the recruitment of 10,000 fresh soldiers.

A little over 30 percent of the budget will be earmarked for maintenance and operating expenses, while the remaining 10-15 percent will be capital outlay.

Marcos said defense spending is among the top 5 government agencies with substantial increases for 2027. There are also increases in the interior and local government, and the public works department.

The education sector remained the top priority with the largest share of the budget at 1.15 trillion pesos, despite a 11.5 percent reduction from 1.3 trillion pesos this year.

Infrastructure spending by the Department of Public Works and Highways will increase by 22 percent from

530 billion pesos to 644 billion pesos to spur economic growth in 2027.

Last year, public works spending was cut by about 40% from a proposed 881 billion pesos amid allegations of irregularities in public works projects.

The economy grew 2.3 percent in the second quarter from a year earlier, its weakest pace since 2021, due to a slump in construction and softer domestic demand.

The first half of 2026 saw economic growth slump to 2.6 percent below the 3.5 percent to 4.5 percent target for the year.

The proposed budget for 2027 is equivalent to 21.7 percent of ⁠gross domestic product.

The 316 billion pesos increase in next year’s spending would cover mandatory obligations, such as salary adjustments for military and ⁠uniformed personnel. (Also read: Reconfiguring Philippine defense forces)

Next year’s total disbursements of 6.9 trillion pesos against projected revenues of 5.2 trillion pesos will result in a fiscal deficit of 1.7 trillion pesos ⁠to be financed through borrowing.

The government has set a GDP growth target of 5.0 percent to 6.0 percent for 2027 to 2030.